PowerPool (CVP) is a protocol for pooling governance tokens (GT) such as COMP, BAL, LEND, YFI, BZRX, AKRO and more. Minority token holders can now take advantage of minimal utility from those tokens for two reasons:

• They cannot affect votes
• A significant portion of such tokens does not bring any income.

As a result, the underlying value of such tokens for minority holders is close to zero, and the protocols face the problem of voter apathy.

PowerPool is a protocol that provides a convenient solution for pooling governance tokens. It allows token holders to lend, pool, borrow governance tokens, receive income from them, and accumulate governance power in Ethereum-based protocols. PowerPool’s mission is to extend the utility of governance tokens to end users and provide a new level of governance in decision-making within the Defi ecosystem.

Facilitating the end user and the Defi . protocol

Impact on farming: Users can earn more GT from their holdings. As a result, user stakes continue to increase as interest is paid in the same governance token.

Solution for the indifferent voter: With profit and LM as the driving force, passive token holders will have an incentive to aggregate their GT in the PowerPool. According to demand, these tokens will participate in the voting, increasing the overall voting capitalization. With a lack of demand, tokens can participate in voting even if no one borrows them at the discretion of the CVP holders.

Accumulation of voting rights: Previously, it was quite futile to allocate voting power to thousands of minority token holders. It can now be centralized in one place through PowerPool and become a real force in the management of protocols.

Development roadmap and how to participate?

Now, they have the project ready to be deployed on the testnet. Mainnet coming soon. There are three main stages to initiate the protocol:

Testnet phase: Since their product is experimental, they need to test the functionality of key components in a secure testnet environment. They invited all Defi community members to test the protocol, find bugs and try to hack it. This will take about a week.

Babynet stage: They are engineers trying to create a reliable and secure product, and they see the risk of attracting large amounts of liquidity into an untested protocol. During the limited mainnet time, a stub version of PowerPool will be launched with a liquidity cap of $50,000.

Mainnet stage: This phase is unrestricted and begins immediately after passing the security check and carefully examining all the features of the protocol. From this point on, PowerPool will grow, becoming more and more liquid to become a real force in the management of community controlled Defi protocols.

Details of the protocol token

They introduced the native token of the PowerPool protocol – CVP (Centralized Voting Power). It will allow protocol governance (including code upgrades) to be passed on to the active community and liquidity providers. It is a governance token, which has a whole new functionality that has been incorporated into any Defi protocol, governed by token holders.

Token functions (vote on proposals regarding the operation of the protocol):

• List new liquidity pools in PowerPool protocol and allocate liquidity mining rewards to them
• Add and remove collateral types in the protocol
• Add new lending logic to the protocol (now let’s look at fixed term agreements and some more)
• Upgrading and maintaining the source code of the smart contract

In addition, CVP has a unique function that was not present in other loan processes before. It depends on direct voting using the remaining GT (not endorsed by the borrower) in the PowerPool loan contracts. The CVP thus derives value from its ability to self-regulate the PowerPool protocol and from its ability to decide how aggregate GTs should vote.

Conclude

PowerPool is based on a simple lending model, which at first glance resembles the Compound model. Any GT token can provide contract liquidity and receive interest if the need arises. Anyone in the market can borrow GT to put authorized digital assets as collateral. Currently, they plan to add ETH, wBTC, and DAI as collateral to borrow governance tokens. On the other hand, it has certain upgrades and a specific set of experiences developed to form the price feed of volatile assets like GT.

According to AZCoin News

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